Detailed Project Report On Establishing 500 + 25 Sheep Breeding

Development Unit Under National Livestock Mission,

Entrepreneurship Development Programme.

A. ABOUT THE APPLICANT (Individual)

Sl. No Particulars Details

1. Name

2. Age

3. Sex

4. Aadhaar Card No.

5. PAN Card No.

6. Permanent Address

7. Contact No.

8. Date of Birth

9. Educational Qualification

10. Years of Farming Experience

11. Bank Account Number

12. Name of Bank

13. IFSC Code of Bank

14 Farm Location Details land survey Number

15 Status of Land Available

 B. About Project Report on 500+25 Sheep Breeidng Unit

SL NO. PARAMETERS VALUES

1 SPECIES, NAME OF BREED SHEEP - NELLORE JODIPI

a. No. of Male 25

2 Unit Size b. No. of Female 500

TOTAL UNITS 525

MALE 18-24 Months (2-4 teethed)

3 Age of Procurement
FEMALE 12-18 Months (2 teethed)

Sheep Farming Experience (Yes/No) YES

4

Total Land Area (in acres) 4.94

5 Number of people employed 5 PAIR

6 Number of farmers to be impacted 5

7 Implementation period (No. of Years/Months) 6 Months

8 Electricity (Yes/No) YES

9 Land Connectivity(Yes/No) YES

10 Distance from nearest Vet. Hospital(in Kms) RAYALAPETA 4 KM

11 Type Of Farming Zerograzing (Stall Feeding)

12 Type Of Housing Pucca & Ground Level

C. MEANS OF FINANCE

MY OWN SHARE INR 1,362,750.00

CAPITAL
INVESTME BANK LOAN INR 4,000,000.00
NT
IN-PUT SUBSIDY 50% OF PROJECT COST OR MAX INR 5,000,000.00

TOTAL RS: INR 10,362,750.00

 D. PROJECT PROFILE

i. INTRODUCTION

Sheep farming in India holds significant importance owing to its multifaceted contributions to the

country's agricultural and rural economy. Economically, these small ruminants serve as vital sources

of income and livelihood for numerous rural households, particularly small and marginal farmers,

offering a reliable avenue for income diversification. Often referred to as the "poor man's cow" .

Sheep are accessible to small-scale farmers due to their lower feed and space requirements,

providing a viable alternative to larger livestock. Furthermore, their meat and by-products contribute

significantly to nutritional security, especially in regions with limited access to other sources of

animal protein. With their inherent resilience to harsh environmental conditions, sheep play a crucial

role in mitigating the impacts of climatic variability, making them well-suited for semi-arid and

marginal lands. Currently, India has one of the largest sheep populations globally, with millions of

animals reared across various states. According to government estimates, India's sheep population

is over 74 million while the goat population is over 148 million. However, the sector is predominantly

characterised by small-scale and backyard enterprises, highlighting its potential for expansion and

improvement. Moreover, India's rich diversity of native sheep breeds presents opportunities for breed

conservation and genetic improvement initiatives. With the growing demand for sheep products in

domestic and international markets, there is immense potential for value addition and export

opportunities.
 ii. PROJECT OBJECTIVES

a) Local Breed improvement in Sheep Population

b) Provide self-sustainability to farmers through scientific sheep rearing

c) Promote scientific Sheep rearing among the farmers especially marginal and small farmers.

d) To meet the ever increase demand of Sheep meat.

e) Women empowerment through Sheep husbandry

f) Build-up rural empowerment unwaged youth

g) Value addition of sheep products like wool etc

h) Develop alternate income source through byproducts - dung and vermicompost etc.

i) Conversion of the small ruminant sector from unorganized sector to organised sector through
promotion of entrepreneurship & investment and creation of forward & backward linkages.

j) Promotion of stall-feeding model of sheep rearing unit. / Self-employment

iii. REQUIRED CONDITIONS

Fodder Arrangement / Feeding

ADVANCE FEEDING MANAGEMENT

Supplementary feeding either through green fodder or concentrate mixture may be provided
depending upon environment and system of rearing. Sheep relish leguminous fodder (viz.
Lobia, Barseem, Leucern). Therefore, non-leguminous fodder can be fed with leguminous
fodder in 1:1 ratio and balance diet for stall-fed sheep normally contain concentrate, dry
fodder and green fodder in 1:1:1 ratio
1 Concentrate Feed TMR (Preparation - Total Mixed Ration)
a. Hydroponic system Maize, Horse gram, Sun Hemp,
Bajra, Ragi, Foxtail millet, Jowar, Moth bean, Little
millet (Saamai), Kodo Millet (Varagu), Barnyard millet
2 Green Fodder (Kuthiraivaali)
b. Napire grass, leucern, mulberry, sweet potato,
yellow maize, stylo hemata.
RECYCLING Reprocessing and utilisation of any AIBPs -
feed resources and to reduce the feeding cost AIBPs ;
3 Dry Fodder
Own Cultivated 5 acres land and collect from some
tree leafs / extracts, Collect from some other farmers.
 iv ANIMAL SHEDS CONSTRUCTION DETAILS
Type of No Of
Sft/Animal Req. Total area in Sft.
iv Animal Animals
Floor Space 10 Females 500 5000
Required in
Sft & Shed 20 Males 25 500
9000
Size
6 Lambs 500 3000

Sick @ 10% Approx of females Shed Area 500

3 SILOS FOR DRY FEED (TMR) 750

Other Civil Dry Fooder and Silage Store 750 2000

Stuctures Hydroponic System 300

Lab And Quarantine Room 200

TOTAL 11000

Open paddock Double the area of main sheded area approx. 18000

TOTAL LAND REQUIRED FOR SHEDS + OPEN PADDOCK + OTHER STUCTURE 29000

v Labour required Pair 5

Vety Services From local Veterinary Hospita as and when required
Unit gestation period 12 months

All females concived within the one month after arriving in farm and few may be already carrying early
pregnancy at procurement time

Pregnancy period 5 mobths

First lambing month at farm 6th month

Breeding cycle length 8 months

Lambs born per lambing from each ewe 1

Male ; Female ratio of new born Equal 1;1

Replacement of adult male Once in 24-30 months / Purchased from out side

Replacement ofculled females Made with farm born ewq lambs

Birth weight of lambs 8% of mothes weight

First sale month after start of farm 12th month

vi VARIABLE ECONOMICAL PARAMETERS

1 Body weight of Females Approx Kgs 30

2 Purchase cost of Females RS/KG 325
3 Body weight of Males Approx Kgs 40
4 Purchase cost of Males RS/KG 450
5 Cost of construction of sheds RS/SFT 375
6 Cost of construction of Other civil works RS/SFT 200
7 Cost of Feeders RS/One 2500
8 Cost of Waterers RS/One 750
9 Chaff cutter cum Pulveriser RS/One 350000
10 SILOS ; SILAGE; HYDROPHONIC SYSTEM RS/One 250000
11 Transport Cost per animal RS/One 150
12 Insurance cost per Animal / Year Per cost 4%
13 Mortality in lambs from birth to sales In Total 4%
14 Mortality in adults per breeding cycle In Total 4%
15 Culling of adult females per breeding cycle In Total 5%
16 Weight of culled Females Each 35
17 Weight of Replaced Males Each 45
18 Sale price of Lambs RS/KG 375
19 Sale price of replaced males RS/KG 350
20 sale price of culled females RS/KG 300
21 No of males replaced each time In Total 25

21 Manure production / Animal / Day inEach

Kgs 0.60
Sale price of manure RS/KG RS/KG 2.00

22 Births Mortality Availability for sales details Male Female

Total Lambs born 499 249 250

Mortality of lambs 4% from birth to sale 20 10 10
After mortality. Total lambs available 479

Replacement of culled females (5%)/Cycle 0 25

Replacement of adult female mortality (4%)/Cycle 0 20

Lambs available for sale in each cycle 434 239 195

Lambs sold/Ewe/ Cycle (after replacement) 1

Lambs born per Ewe/Cycle 1

Lambs available/Ewe/Cycle (After mortality) 1
 Conception % 95%

Twinnig % 5%

Triplets % 0%

Quadruplets % 0%

Total lambing % 99.75%

23 Birth weight of lambs Kgs 2.40

24 ADG in Gms 130.00

25 Total weight gain in 180 days (kgs) 23.40

26 Weight at sale after 180 days 25.80

Weight
27 Estimated Sale Prices Per Kg Total sale price
in Kgs

A Sale price of lambs 375.00 25.80 INR 9,675.00

B Sale price of culled females 300.00 35.00 INR 10,500.00

C Sale price of Replaced males 350.00 45.00 INR 15,750.00

D Sale price of manure per animal per day INR 1.20

Sale price of manure per unit per day INR 630.00

Cost of
Roughage 6.00
fodder

Cost of Adult feed 30.00

Feed & Fodder Cost on Conc.feed
28 Creep feed 35.00
DryMatter Basis
Estimated Adult Female RS/KG 9.90
Feeding cost
per day Rs Adult Male 14.40

Preweaning stage 126.00

29 Total feeding cost of Lambs
Weaning 46 to 180 days age

30 Land Lease RS; Total lease Rs / YEARS 0 0.00

 V. Proposed Shed Construction And Land Survey Number Details 64/4

GRAM PANCHYATH KOLATHU

REVENUE VILLAGE KOLATHU

MANDAL PEDDA PANJANI

Form Location
DISTRICT CHITTOOR

STATE ANDHRA PRADESH

PIN CODE 517 414

VI. COST OF PROJECT

FEMALES 4875000.00
I COST OF ANIMALS INR 5,325,000.00
MALE 450000.00
ANIMAL SHEDS 2062500.00
II COST OF CIVIL CONSTRUCTION KID SHED & SICK PEN 1312500.00 INR 4,065,000.00
OTHER CIVIL STRUCTURES 690000.00
MACHINERY,
350000.00
EQUIPMENTS
III FARM EQUIPMENT INR 600,000.00
SILOS ; SILAGE;
250000.00
HYDROPONIC SYSTEM

78750.00
TRANSPORT COST
IV OTHER COMPONENTS INR 273,750.00
195000.00
INSURANCE 1st YEAR
V FODDER CULTIVATION 5 ACRES 99000.00 INR 99,000.00

TOTAL COST OF PROJECT INR 10,362,750.00

VII. WORKING CAPITAL

UNIT SIZE COST / UNIT PER DAY PER MONTH PER CYCLE 8 MONTHS

a) Slilled / Unskilled Labors 5 Pair 15000 5 * 15000.00 = 75000.00 INR 600,000.00

b) Feed & Fodder cultivation 4.77 2504.25 75127.50 INR 601,020.00

c) Water & Electricity 0.50 262.50 7875.00 INR 63,000.00

d) Land Lease / Rent 525 0.00 0.00 0.00 INR 0.00

e) Midcellaneous 0.50 262.50 7875.00 INR 63,000.00

f) Veterinary Aid on Vaccine &

0.25 131.25 3937.50 INR 31,500.00
Medicines,
g) Other Transport Charges / Fuel 0.25 131.25 3937.50 INR 31,500.00

TOTAL WORKING CAPITAL PER CYCLE INR 1,390,020.00

ESTIMATED NET INCOME PER CYCLE INR 1,647,181.00
ESTIMATED NET INCOME PER YEAR INR 2,470,771.00

Present Market Values Are Considered for Prepering DPR

NOTE As per previous recors the sale prices are increasing constantly by 5-10 % every year
NET PROFITS MAY VARY FROM -10 TO +10

ASSET VALUE AFTER 7 YEARS ANIMALS COST (Not less than Procurment Cost) INR 5,325,000.00

VIII ESTIMATED RECURRING EXPENDITURE

A Estimated Feeding Cost

Per Day Feeding Cost Of Breeder Ewes

Requirement
Avg Bwt Cost per KG Total Cost Per
Feed Type Per Day Per Day
of Adult Dry/Green on DM basis Day (RS)
Requirment Requirment
Cultivate/Cr Cost Per Cost per breeding
1
30 op residue / 3.0% 0.90 6.00 5.40 month/ Ewe cycle/Ewe
ROUGHAGE
Silage
2
Concentrat Home Made 0.5% 0.15 30.00 4.50
e Feed
Total Feefing Cost per day / Female Adult 9.9 297 2376

Per Day Feeding Cost Of Breeder Ram

Requirement
Per Day Per Day Cost per KG
Feed Avg Bwt Total Cost
Requirment Requirment on DM
Type of Ram Dry/Green Per Day (RS)
on Body (KGS) on DM basis
weight basis basis
Cost Per
Cost per Breeding Cycle
Month/
1 Cultivate/C /Ram
Ram
ROUGHA 40 rop residue 3.5% 1.40 6.00 8.40
GE / Silage
2
Home
Concentr 0.5% 0.20 30.00 6.00
Made
ate Feed
Total Feefing Cost per day / Ram 14.40 432 3456
 Per Day Feeding Cost Of Lambs 45th Day to 180 Days
Requirement

Per Day Per Day

Avg Bwt Cost per KG Total Cost Per
Feed Type Requirment Requirment
of Lamb Dry/Green on DM basis Day (RS)
on Body (KGS) on DM
weight basis basis

Total Cost for 135 days per each lamb

1 Cultivate/Cr
ROUGHAG 15 op residue / 4.0% 0.60 6.00 3.60
E Silage

2
Concentra Home Made 1.0% 0.15 35.00 5.25
te Feed
Total Feefing Cost per day / Lamb 8.85 1195

Average body weight of lamb from 45th day to slaughter is considered as 15 KGS

CREEP FEED AT FEEDING COST FOR PRERUMINANT STAGE 15 TO 45th DAY

Requirement

Per Day Per Day

Avg Bwt Cost per KG Total Cost Per
Feed Type Requirment Requirment Total cost for 30 day per each lamb
of Lamb Dry/Green on DM basis Day (RS)
on Body (KGS) on DM
weight basis basis

Concentra Home Made

4 3.0% 0.12 35.00 4.20 126
te Feed Dry

B. PRODUCTION COST OF LAMB FOR SALE

Feeding cost EWE for 8 months RS PER DAY 9.9 RS PER 8 MONTHS INR 2,376.00

Feeding cost Breeding Ram for 8

RS PER DAY 0.72 RS PER 8 MONTHS INR 173.00
months 1;20 basis

Feeding cost lamb from 15th day to

RS PER DAY 3.64 RS PER 30 DAYS INR 109.00
45th day for 1 Lamb 30days

Feeding cost lamb from 46th day to

RS PER DAY 7.68 RS PER 135 DAYS INR 1,037.00
180th days for 1 Lamb 135days

Labour on each WEW / CYCLE RS PER DAY 5 RS PER 8 MONTHS INR 1,200.00

Health Care and Misc / on each

RS PER DAY 1.58 RS PER 8 MONTHS INR 378.00
EWE / Cycle

INR 5,273.00
No of lambs available from one EWE / Cycle after Mortality 96%
Slaughter
Production cost of one lamb 5506 26 KGS
Weight
Production cost of one KG LIVE 213
% OF PRODUCTION COST ON LIVE SALE PRICE 57 Sale Price RS 375

LIFE SPAN OF SHEEP # 10-12 YEARS

LAMB STAGE ADULT STAGE
PER-WEANING WEANED YOUNG OLD
4-12
MONTHS 12-84 MONTHS AGE >84 MONTHS AGE
AGEFOR
SOLD
SLAUGHTER
ON REPRODUCTIVE AGE
0-90 DAY AGE
ATTAIPING LESS PRODUCTIVE OR
24-30 KGS UNPRODUCTIVE SOLD FOR
WEIGHT @ 6- SLAUGHTER
RELAINED IN FARM FOR
9 MONTHS
BREEDING
AGE

BREEDING CYCLE LENGTH

PREGNANCY PERIOD LACTATION DAYS DRY PERIOD DAYS TOTAL LENGTH OF BREEDING CYCLE
240 DAYS OR 8 MONTHS (3
150 DAYS 45 - 60 DAYS 30-45 DAYS
CYCLES IN EVERY 2 YEARS)

TOTAL NUMBER OF BREEDING CYCLES IN LIFE TIME # 9 @ fro 18th month of age to 84 months of age
(Assumption : If first time conceived at 12-13 months age)

Age of
EWE No of Lambing No of Lambs @1 Lamb
(Months) per Lambing
18 1st Lambing 1
26 2nd Lambing 1
34 3rd Lambing 1
42 4th Lambing 1 As in every breeding cycle culling is advised @ 5%. The
production / breeding cycle will be continued without any
50 5th Lambing 1 break.
58 6th Lambing 1
66 7th Lambing 1
74 8th Lambing 1
82 9th Lambing 1
TOTAL LAMBINGS 9 TOTAL LAMBS 9
 FLOCK PROJECTION CHART
Sl. No. Particulars Year
I II III IV V VI
Kidding Nos. 1 2 1 2 1 2
A. Opening Stock - Adult Rams 25 25 25 25 25 25

Adult Doe purchased stock 500 500 500 500 500 500

B. Birth during the year 425 425 425 425 425 425
Male Kids 340 680 340 680 340 680

Female Kids 340 680 340 680 340 680

C. Mortality
Male Kids 34 68 34 68 34 68

Female Kids 34 68 34 68 34 68

D. Sale during the year

Male Kids 306 612 306 612 306 612

Female Kids 306 612 306 612 306 612

 ECONOMICS OF SHEEP FARMING
Years
S.N. Particulars
I II III IV V VI

1 Income

a) Sale of animals

Sale of adult Ram 0 0 25000 0 25000 0

Sale of adult Ewe 0 0 350000 0 350000 0

Sale of Male Kids 0 2983500 5967000 2983500 5967000 2983500

Sale of Female Kids 0 2983500 5967000 2983500 5967000 2983500

b) Sale of gunny bags 10000 10000 10000 10000 10000 10000

c) Sale of manure 15000 30000 30000 30000 30000 30000

Total income 25000 6007000 12349000 6007000 12349000 6007000

2 Expenditure
Green fodder
95000 95000 95000 95000 95000 95000
a) cultivation cost

b) Feed cost

Rams 11250 11250 11250 11250 11250 11250

Ewes 201000 201000 201000 201000 201000 201000

Kids 68850 68850 68850 68850 68850 68850

Medicines/Vet.
13125 13125 13125 13125 13125 13125
c) charges

d) Insurance 195000 195000

Misc.(Electricity
5000 5000 5000 5000 5000 5000
e) charges etc.)

f) Labour wages 900000 900000 900000 900000 900000 900000

Total Expenditure 1560475 1294225 1294225 1560475 1294225 1294225
Gross Profit -1535475 4712775 11054775 4446525 11054775 4712775
 REPAYMENT SCHEDULE
Year
Particulars
I II III IV V VI

Principal Outstanding 4000000 4000000 3200000 2400000 1600000 800000

Interest due 480000 480000 384000 288000 192000 96000

Principal Repayment 0 800000 800000 800000 800000 800000

Total Repayment 480000 1280000 1184000 1088000 992000 896000

Gross Profit -1535475 4712775 11054775 4446525 11054775 4712775

Net Profit -2015475 3432775 9870775 3358525 10062775 3816775

Debt Service
-2.20 4.06 9.66 4.35 11.34 5.37
Coverage Ratio
(DSCR)
Average DSCR 5.43

Internal Rate of
72.45
Return
 REPAYMENT SCHEDULE

Particulars Year Total

I II III IV V VI

Income 25000 6007000 12349000 6007000 12349000 6007000 INR 42,744,000.00

Project Cost 10263750 0 0 0 0 0 INR 10,263,750.00

Recuring cost net

1560475 1294225 1294225 1560475 1294225 1294225 INR 8,297,850.00
capitalized

Total Cost 11824225 1294225 1294225 1560475 1294225 1294225 INR 18,561,600.00

Cash flow 25000 6007000 12349000 6007000 12349000 6007000 INR 42,744,000.00

Net Cash flow 25000 6007000 12349000 6007000 12349000 6007000

Discount Factor
0.87 0.76 0.66 0.57 0.50 0.43
(15%)

Discounted Income 21739.1304 4542155 8119668 3434522 6139636 2596992 INR 24,854,711.21

Discounted Cost 10281934.8 978620 850974 892207 643459 559529 INR 14,206,723.16

Discounted Cash
21739.1304 4542155 8119668 3434522 6139636 2596992 INR 24,854,711.21
Flow
Discounted Factor at
0.74 0.55 0.41 0.30 0.22 0.17
HRD
Discounted cash flow
16103.0596 2492266 3300175 1034025 1369222 429011 INR 8,640,801.68
at HRD
Discounted Factor at
0.77 0.59 0.46 0.35 0.27 0.21
LRD
Discounted cash flow
16722 2687666 3695798 1202522 1653582 538035 INR 9,794,324.79
at LRD
Bank Interest Rate
0.12
(BIR)

Higher Rate of
35
Discounting (HRD)

Lower Rate of
30
Discounting (LRD)
Internal Rate of
72.45
Return (IRR)
 CERTAIN TERMS COMMONLY USED IN SHEEP FARMING

SHEEP All Sheep of Both Sex and of all Ages, Sheep # One or More Sheeps
SHEEP FLOCK Group of Flock
EWE Female Adult Sheep
RAM Male Adult Sheep
SHEEP RELATED TERMS

Lambs Young of either sex

EWE LAMB Young Female 0 - 9 Months
RAM LAMB Young Male 0 - 9 Months
WEANING First 90 Days After Birth # Kept With Mothers
WEANED Separated From Mother
WETHER Castrated Male Sheep
SPENT Aged Sheep # After 7 - 8 Years Of Age
SLAUGHTER AGE 6 - 9 Months @ Should Attain 24 - 30 KGS Weight
ACT OF DELIVERY Lambing
ACT OF MATING Tupping
FEED AND FODDER RELATED

FEED FOOD OF SHEEP

FODDER ALL PLANT MATERIAL USED AS FEED
CONCENTRATES ALL SEEDS AND THEIR BY-PRODUCTS USED AS FEED
TERMS

ROUGHAGES ALL FODDERS (DRY AND GREEN)

LEGUMES PROTEIN RICH FODDERS
NON - LEGUMES ENERGY RICH FODDERS
DRY MATTER FEED MINUS WATER